Most of the Fed's policy tools impact aggregate demand as a whole. Is there any way that the Fed could have targeted the housing market directly in the mid-2000s?
A. Yes, through its power to impact real estate appraisals.
B. Yes, through its power to regulate banks.
C. No, there is no way the Fed can target a specific industry.
D. Yes, through its power to set mortgage interest rates.
Ans: B. Yes, through its power to regulate banks.
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Which of the following is not shown on a product possibilities curve?
(A) The opportunity cost of a decision to produce more of one good or service. (B) All of the goods and services an economy has the ability to produce. (C) The efficiency of an economy. (D) Whether an economy has grown or shrunk.
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to act as a monopolist and charge a single price. What is the profit maximizing quantity produced and what is the price charged?
A) Q = 480 units; P = $16 B) Q = 240 units; P = $28 C) Q = 560 units; P = $12 D) Q = 320 units; P = $24